Why Lordstown Motors Stock Jumped Today
Lordstown Motors (NASDAQ: RIDE) has had a rough time since it announced in May 2021 that it was slashing its 2021 production plans and needed to raise fresh capital. Soon after that, it basically confirmed some issues raised in a short-seller report, admitting that it might not survive as a business (a so-called "going concern" warning). The CEO and CFO then resigned.
Last night, the company reported its first quarterly financial update since that time, and investors initially breathed a sigh of relief. The stock jumped 14% as trading opened today. But those gains didn't hold, and shares were up only 3.9% as of 10:30 a.m. EDT.
The initial jump came because the company said it was maintaining its previously-cut production plans. It still aims to be producing its Endurance electric pickup truck before the end of the year. The "limited vehicle production" should still begin in late September.
Source Fool.com
